The Dax index commenced trading on Monday with losses, reflecting ongoing global economic uncertainties. By 9:30 AM, the leading index was calculated at approximately 24,035 points, a decrease of 0.9 percent from Friday’s closing level. Rheinmetall, Qiagen and FMC led the gainers, while Zalando, Brenntag and Porsche experienced the most significant declines.
Market analysts noted a surprising degree of stability in the Dax despite the emergence of fresh, substantial tariff threats. Jochen Stanzl, Chief Market Analyst at CMC Markets, commented that the market is increasingly perceiving the actions of the US President as performative, with investors recognizing the pattern of deliberate escalation. A growing consensus appears to have developed among investors that the President’s trade policy poses a lesser threat to corporate earnings than initially anticipated. Stanzl cautioned that while this perception might prove beneficial, it also carries inherent risks.
The longer the period of inconsistent trade policy continues, the greater the potential for the US President, self-proclaimed as history’s greatest dealmaker, to be left without tangible agreements – a scenario that could leave him in a difficult position, potentially leading to an activation of the threatened tariffs in an attempt to maintain a public image. Investors currently anticipate a retreat on the part of the President; however, the possibility of tariff implementation remains a tangible concern.
The European currency strengthened slightly on Monday morning, with the euro trading at 1.1671 US dollars, equivalent to 0.8568 euros per dollar.
Meanwhile, crude oil prices saw an increase, with a barrel of Brent North Sea crude costing 70.76 US dollars around 9:00 AM German time – a rise of 40 cents, or 0.6 percent, compared to the previous trading day’s closing level.
